Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-03-04
VIRGINIA & CAROLYN A
ACTION OF THE PETERSBURG coMMoS
COUNCIL Lssr NIGHT.
The Company's Proposition to the City
The Road to DO
Sold.
lspecial ,elerram % lho pI.pa,ch.l

ter was granted by the General Assem-
bly, to the Virginia and Carolina Rail
road Company to build railroad from
Richmond to Ridgway, N. c., the peo-
pie of Petersburg saw that the road
would traverse that section OF the South
side naturally tributary TO their mar
ket, and that the city, commercially,
would be vitality interested in its con-
struction. The direct route of the
road from Richmond passed some miles
west of Petersburg, and the company
would only consent to diyerge and run
through this city in consideration of
handsome bonus-said bonus, as
finally agreed upon, being 800, 900
in aid of the actual construction
of the road, and $4,000 as a
donation to purchase the right of
way through the city. The agreement
was that the 100000 should be given
in exchange for bonds of the company
to q like amount. The positive as
surances of the responsibility of the
company, with the promises that the
road will certainly be built, created a
sentiment in its favor which the Com
mon Council could not feel justi-
fed in disregarding. The result
was that after repeated delays
the Council voted the S150,0O0
be expended as above stated
and work was commenced on the road.
Property was condemned and the right
of way secured by purchase through
the city, and large force was en-
ployed, in sections, to construct the
entertainments of the road. By and by,
to the great establishment and disap-
pointment of our people, the reports
got out that the road had been sold
and that it had fallen into hands hos
tile to its completion. These reports
were investigated and found to be true
as to the sale, Mr.. Moncure Robinson
being owner of the controlling interest.
The matter caused both Indignation and
denunciation, and the Council came i'll
for blame on the score that in making
SO large an appropriation it had not
exacted the proper guarantees for
the building of the road. The
prevalent idea was that the city
had been swindled, to use no harsh
er terms. Able counsel were en-
ployed to look after the city's interests.
and the application of the company for
an extension of its charter was opposed
unless guarantees of building the road
were given. The charter was extended
by the Legislature last year, however,
Notwithstanding the protest of the Coun
ell and citizens.
In July last by direction of the Coun-
ell Mr.. John II. Guy, of Richmond,
acting as counsel, instituted suit in the
Circuit Court of Richmond against the
Virginia and Carolina Railroad Com
pany for the 800, 900 of bonds issued
in aid of the construction of the road,
and the suit would probably have come
to trialin May next, but the probability
now is that the matter may be taken out
of the courts and settled on basis sat
isfsctory to all parties.
Conferences between representatives
of the city and the company have re-
Gently been held, resulting in propo-
sition submitted by the company
through its president, which was pre-
sented to the Common Council tonight
by Mr.. r. G. Osborne, chairman of the
Finance Committee, with the recon-
mendation that it be adopted if proper
guarantees are given. This proposition
is substantially as follows;
THE coMPANY's PROPOSITION.
"That all litigation shall cease; that
Tho rno1'e fro ,obfcnu 20 ha cold Ixr
order of the Court; that the guaranteed
stockholders and the city of Petersburg
shall become the purchasers if sold at
$500, coo or less; that the city shall take
as its interest common stock
to the amount of its subscrip-
tion-S100, 600; that the guaranteed !
stockholders shall take as their
interest common stock to the amount |
of $500, 900, the proportion being one
third and two thirds respectively ; that
bonds shall be issued by the company, |
secured by first mortgage, at the rate
of $40, 900 per mile of road-the pro-
ceeds of these bonds to 90 to the build |
ing and equipment of the road"
The company give the assurance that
all arrangements nave Deen made fOr |
the negotiation of these first mortgage
bonds.
1t is furthermore understood that in
case an outside party bids for the road
he shall become the purchaser at an
amount exceeding 100000, and the
opinion is expressed that in the event
of such purchase the purchasers will
be bound under the terms of the char
ter to build the road. At any rate the
interests of the city and the guaranteed
stockholders would be protected by
such sale.
At present the city's interests are re-
presented by nothing save the bonds of
the company given in exchange for its
own bonds to the amount of 100000.
The company's proposition was fully
discussed in the Council, and a com
mittee was appointed to consider it and
report to an adjourned meeting with
every disposition to meet the company
fairly and courteously.